European stocks plummeted on Thursday as new cases of the virus mount outside of China, including the first from an unknown source in the United States.
The Stoxx Europe 600
SXXP,
fell 3.8% to 389.45, with snowball losses during the session. Banks, including BNP Paribas
BNP,
and insurers, like Allianz
ALV,
rhythms a broad-based retreat. The index has lost ground for five of the past six sessions.
The Stoxx 600 has now dropped 10.3% since its close on February 19.
The yield of the German bund at 10 years
TMBMKDE-10Y,
down 6 basis points and 10-year Treasury yield
TMUBMUSD10Y,
fell 4 basis points.
The World Health Organization said there are now more new cases of coronavirus outside of China for the first time. The U.S. Centers for Disease Control and Prevention said a patient in California was infected and had not traveled outside of the country, while President Donald Trump entrusted Vice President Mike Pence with responsibility for response efforts.
“The slide we are seeing right now is not the correction of the recent surge in stocks, but the market understanding that the coronavirus epidemic would translate into significantly lower profits and anemic global growth. If we add the As the crisis only started outside of China in the mix, there is a significant shift in equity valuations, “said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Anheuser-Busch InBev
ABI,
BUD,
fell 10.3% after warning that operating profit had reached $ 170 million and that revenues had been reduced by $ 285 million over two months as a result of the COVID epidemic- 19. For the year, the brewer expects its operating profit to increase between 2% and 5%.
WPP advertising agency
WPP,
fell more than 16% after forecasting stable comparable sales in 2020 and reporting a larger than expected drop in profits in the fourth quarter.
The French giant of Carrefour supermarkets
CALIFORNIA,
was a rare advancer, up 0.8% slightly after surpassing 2019 earnings estimates and raising his 2022 goals.
FTSE 100 NMC Health component negotiation
NMC,
was suspended in London after an investigation revealed discrepancies in his bank statements and he dismissed his CEO.
